Rupee extends gains, below 84/$ for the first time since October 2024

Rupee

Indian rupee appreciated on May 2 and jumped below 84 mark for the first time in seven months after it opened 40 paise higher.

Currency experts said that inflows into equities and debt, and positive talks between India and US on tariffs is helping Indian rupee to gain.

The local currency opened at 84.0987 against the US dollar, then it traded at 83.9075 against the US dollar, as compared to previous close of 84.4950 against the greenback.

Indian rupee was trading below 84 mark first time since October 1, 2024, when it trading around 83.8213 against the US dollar.

"Rupee opened higher and rose above 84.00 because of rumours of an India US trade deal happening this week and China willingly coming for trade talks with US. No particular inflows but all longs getting cut could be a plausible reason along with US insisting on a stronger rupee," said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

On May 1, Moneycontrol citing sources reported that the government could lower customs duties on a few agricultural and dairy products, such as cattle feed, oats, maize and edible oils, through the proposed trade deal with the US.

While the US is also pushing for lower duties on wheat and rice, India is unlikely to budge, sources said.

On April 29, India’s commerce ministry said New Delhi and the US are betting on opportunities for early mutual wins as both sides inch closer to finalising a multi-sector BTA by the autumn of 2025 with in-person sectoral-level engagements planned from the end of May.

On the same day, US President Donald Trump said that tariff talks with India were "going great" and suggested there was a possibility the two nations could soon reach a deal.